Research On Financial Risk Identification And Control Of Multinational M＆A Of China’s Appliance Enterprises

With the advancement of economic globalization,Chinese appliance companies choose to merge foreign companies to expand overseas and seize market share。Chinese appliance companies want to achieve core quality assets,key technology of the product and share of international market so that they can promote the rapid development of the home appliance industry.Cross-border M&A is not simple transactions because there are many risks that may affect the company’s ongoing production and operation.This paper focuses on the financial risks involved in the cross-border M&A process of home appliance companies.This paper uses literature research and case study phase method.This paper analyzes the identification methods and control measures of financial risks faced by Chinese electrical enterprises through literature research and case study methods.Firstly,This paper describes the research background and research significance.This paper reviews the results of theoretical research at home and abroad.Domestic and foreign scholars generally divide the M&A process when studying the financial risks.Scholars recognized the Z-score and support the use of specific M&A cases to analyze measures.In this way,This paper identifies the relevant concepts and theories.Then,This article describes the policy and situation on cross-border M&A in the home appliance industry.It can be seen that the government agrees with this and supports enterprises to open up overseas markets.This paper describes the methods for identifying various risks in stages that are financing risk,valuation risk,payment risk,exchange rate risk,debt repayment risk and integration risk.Based on the above theoretical basis,this paper analyzes the case that Midea Merged Kuka.Lastly,This paper believes that the current environment is beneficial to Chinese home appliance companies to acquire foreign companies and proposes targeted control measures for them.This paper describes the conclusions and shortcomings of the study.In the context of the transformation of manufacturing to "intelligence",the key to business development is to develop high-tech products.The quick way for companies to quickly acquire smart manufacturing technology is to acquire foreign companies.The key to enterprise development is to distinguish and control financial risks.In the past,it was rare that research on home appliance companies involved in policy.The purpose of this paper is to provide measures that can be used for Chinese home appliance companies so that they can calmly deal with financial risks.